The Lesotho National Development Corporation (LNDC), through its Legal Section, has partnered with the International Institute for Sustainable Development (IISD) to host a crucial workshop titled “Re-Thinking the Use of Tax Incentives and Other Investment Promotion Tools in Lesotho.” The workshop, which began on Monday, January 27, 2025, will run through Thursday, January 30, 2025. This initiative is part of a three-year technical assistance program by IISD aimed at supporting Lesotho in reforming its investment incentive policies.
The workshop focuses on optimizing Lesotho’s use of tax incentives as a tool for attracting investment and aligning the country’s investment strategies with global best practices and sustainable development goals. As part of the partnership, the IISD is facilitating discussions on how Lesotho can enhance its investment framework, ensuring it supports long-term economic growth and environmental sustainability.
Engagement on Day One: Opening Session Highlights
On the opening day, LNDC management, along with the Ministry of Trade, Industry, and Business Development, engaged with the IISD team at LNDC offices. During this session, IISD presented a proposed incentives framework tailored to Lesotho’s unique economic needs. The presentation outlined key priorities for 2025, emphasizing the need for a re-evaluation of the country’s tax incentives and investment promotion tools.
The objective of this workshop is to foster a collaborative dialogue among various stakeholders, including government officials, private sector representatives, and development experts. By bringing these diverse groups together, the workshop aims to generate constructive discussions on how to optimize Lesotho’s tax incentives, enhance the investment climate, and ensure alignment with global tax developments.
Key Objectives of the Workshop
The primary goals of the workshop are:
- Fostering Dialogue Among Stakeholders – Bringing together key players in the Lesotho investment ecosystem, the workshop will provide a platform for open discussions on how to improve the country’s investment framework.
- Optimizing Tax Incentives for Investment Promotion – The workshop will explore ways to better utilize tax incentives as a tool to attract both domestic and foreign investments while promoting sustainable economic growth.
- Aligning Lesotho with International Tax Developments – As tax systems globally continue to evolve, the workshop will focus on ensuring that Lesotho’s policies are in line with international standards and best practices in taxation and investment promotion.
The Role of IISD in Supporting Sustainable Development
IISD, a globally recognized think tank, is playing a key role in supporting sustainable development initiatives in Lesotho. The organization’s efforts focus on empowering governments and communities in the Global South to achieve fair and equitable economies while ensuring environmental sustainability and climate stability. Through its three-year technical assistance program, IISD aims to assist Lesotho in reforming its investment incentive policies to promote sustainable, long-term economic growth.
This workshop marks the second in a series of engagements hosted by IISD, following the success of its previous missions. The ongoing partnership between LNDC and IISD is seen as an important step in shaping a modern investment climate in Lesotho that is both competitive and aligned with global trends.
The Path Forward: Optimizing Investment Incentives
As the workshop progresses, participants will explore a range of strategies to enhance Lesotho’s investment climate, from revising existing tax incentives to creating new policies that align with both national development goals and international best practices. The goal is to create an investment framework that not only attracts more investment but also ensures that such investments contribute to sustainable development, job creation, and long-term economic resilience.
The collaboration between LNDC and IISD to host this workshop reflects a commitment to rethinking how Lesotho approaches investment promotion and tax incentives. By fostering dialogue, optimizing tax incentives, and aligning with global tax developments, Lesotho is taking significant steps toward creating a more sustainable and attractive investment environment. As the workshop continues through the week, the insights gained are expected to play a pivotal role in shaping the country’s investment strategy for the future, contributing to its broader economic and development objectives.
